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Viewing 20 posts - 41 through 60 (of 16,085 total)
  • Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,173

    Shares of a jointly owned property are fixed at settlement. You will either own as tenants in common which could be 50/50 or any unequal % or as joint tenants which is considered 50/50 for tax purposes.

    It is still possible to use strategy 3 – one joint owner selling their interest to the other joint owner. Must be the whole interest though for this to work. i.e. end up with one owning 100%

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    No such thing as a love clause!

    You could sell to your spouse, but this would result in duty in VIC. There used to be an exemption for transfers between spouses, but now only if gifted and end up 50/50 owners.

    Here is a link to an old thread on here where I outlined 13 strategies you could consider:
    https://www.propertyinvesting.com/topic/5037824-13-strategies-for-when-you-move-out-of-the-ppor-and-want-to-keep-it/

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    Not transferring title doesn’t mean that CGT doesn’t apply. In many cases it does
    a) granting an easement
    b) granting a life interest
    c) declaring a trust
    etc

    Yes I could review legal documents for you. I testamentary trusts are a speciality of mine. Was it drawn up after legal advice? You can email me direct if you wish.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    But then again it might.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,173

    Thanks Jacq

    I could view that page even without being a facebook member.

    There is a link on that facebook page to a private binding ruling from the ATO:
    https://www.ato.gov.au/law/view/document?docid=EV%2F1051448104408&fbclid=IwAR3zSnp9aviI6ahdprn3ovHXEfpX8Z9v7O5pAZKFwzJ7PnJ79PgKLbnPlIc
    Authorisation Number: 1051448104408

    These rulings only apply to the person that makes the application so they cannot be relied upon by others, but they are good to read as the ATO will answer and explain their answer.

    It seems this applicant entered a deed which assigned their equitable interest in assets, possibly land, to the trustee of a discretionary trust. It is well known, common knowledge, but tax practitioners that this would cause a CGT. Change of legal ownership won’t but change of beneficial ownership will.

    But merely gifting ‘cash’ to a trustee and borrowing it back will not be a CGT event because cash is not a CGT asset.

    From what I have seen it would be unusual for an asset protection lawyer to recommend an assignment of an equitable interest like this.

    This private ruling may not relate to the Grubisa system.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    who owns the property?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    Hey there,

    What ended up happening?

    I’m really unhappy with the service. I signed up too.

    Check this FB page if you are still having issues. There is new light being shed on Capital gains tax – equitable interests – transfer of assets to trust. New ruling from ATO.

    Cheers

    What is the link for this please.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,173

    This is trick as there are different aspects so you would need tax, legal, credit and financial advice.

    Probably best to check with a broker first that your potential smsf trustee can in fact borrow. Macquarie have just pulled out of SMSF lending so there is a dwindling source and lenders out there. I can only think of one, Latrobe, off the top o fmy head.

    If you can’t get finance then there is no point in getting legal or financial advice.

    If there is then next step would be to seek out a financial planner (AFSL licenced) who should work in conjunction with a lawyer.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    Hi Property Buyer

    I will try to squeeze you in, I think you may have emailed me but I am not sure of your real name now so could you please send me another email with your phone number and I will give you a call.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    Post Count: 16,173

    Has the property always been the main residence?
    Ever income producing before moving out?
    claimed another property as the main residence during the same ownership period?
    spouse had a different main residence during the same time?
    land less than 2 hectares?
    Tax residents?
    Not owning as a trustee?

    If none of the above applies it would probably be exempt from CGT.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    Not really my area of interest, your conveyancing lawyer should be able to advise.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    A property lawyer should be able to advise on this. laws differ from state to state.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    Will be hard to get a loan with a family member providing a security guarantee if they are not benefiting from the property. ideally you would get the family member to borrow and lend to the entity purchasing.

    Commercial generally needs at least 30% deposit plus closing costs so it can eat up a lot of your equity/cash. Also can be harder to borrow against any increase in value compared to residential.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    The contract is conditional upon finance being granted, so if no finance is granted you could terminate the contract provided you have complied with the other clauses.

    There is nothing mentioned in these clauses about an extension, or a letter.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    Where will the deposits come from?

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    Do you think values where you are renting will increase in the near future?
    renting is probably cheaper than owning so no point in buying unless you think values will grow faster than what if costs you to rent (renting – home costs)

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    That is really a personal decision with a bit of growth predictions thrown in.
    Selling one property to buy another will generally eat into about 10% of the value, assuming CGT free, as you have agents fees, stamp duty etc.

    But it could work out better as you would be saving non-deductible interest.

    Consider some alternatives such as a related party sale.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    No, interest would still be deductible. But they are proposing to limit negative gearing, or using a loss from property investing to reduce your other income.

    Without any draft legislation it is impossible to know what they are proposing.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    i can’t give you complex legal advice on a forum, and even in private I wouldn’t advise on foreign trusts and tax as it is not an area that i work in. As one example, consider the tax consequences if a settlor can benefit from a trust.

    Another example is asset protection – you being an intermediary opens a can of worms.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
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    @terryw
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    To be clear, here is an extract from Schedule 1 of the NCCP. So, if you are in the business of buying and renovating properties for profit then NCCP does not apply. If you borrow in a company or trust name the NCCP does not apply.

    The Code is different to the NCCP. The Code is just a schedule of the NCCP, i.e. a part of it.

    What do you think of s29 of the NCCP?
    http://classic.austlii.edu.au/au/legis/cth/consol_act/nccpa2009377/s29.html

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

Viewing 20 posts - 41 through 60 (of 16,085 total)